Costing Archives - Page 3 of 116 - MCQ and Quiz for Exams

21. The cause of increase in cost per unit under process costing is

Abnormal wastage

Normal wastage

Abnormal gain

Normal gain

Detailed SolutionThe cause of increase in cost per unit under process costing is

22. Which of the following methods of stock control aims at concentrating efforts on selected items of material?

Perpetual inventory system

Material turnover ratio

Level setting

ABC analysis

Detailed SolutionWhich of the following methods of stock control aims at concentrating efforts on selected items of material?

23. Collection of cost data, according to accounting system in an organized way is classified as

system accumulation

accumulated data

cost accumulation

organized accumulation

Detailed SolutionCollection of cost data, according to accounting system in an organized way is classified as

24. Methods used to allocate costs of reciprocal support departments include

direct method

step down

reciprocal method

all of above

Detailed SolutionMethods used to allocate costs of reciprocal support departments include

25. Match the following. List-I List-II a. Operating profit 1. Capital employed = . . . . . . . . + Preference share capital b. Liquid liabilities 2. . . . . . . . . = Gross profit – Operating expenses c. Capital employed 3. Quick assets = Quick ratio Ã . . . . . . . . d. Equity share capital 4. Fixed assets ratio = Fixed assets Ã· . . . . . . . .

a-2, b-3, c-4, d-1

a-3, b-4, c-1, d-2

a-4, b-3, c-2, d-1

a-2, b-1, c-4, d-3

Detailed SolutionMatch the following. List-I List-II a. Operating profit 1. Capital employed = . . . . . . . . + Preference share capital b. Liquid liabilities 2. . . . . . . . . = Gross profit – Operating expenses c. Capital employed 3. Quick assets = Quick ratio Ã . . . . . . . . d. Equity share capital 4. Fixed assets ratio = Fixed assets Ã· . . . . . . . .

26. The cost of material that is not completely processed, would be found in which of the following inventory account on the balance sheet?

Direct material inventory

Work in-process inventory

Finished goodsinventory

Supplier inventory

Detailed SolutionThe cost of material that is not completely processed, would be found in which of the following inventory account on the balance sheet?

27. ___________ is a summary of all functional budgets in a capsule form.

Functional Budget

Master Budget

Long Period Budget

Flexible Budget

Detailed Solution___________ is a summary of all functional budgets in a capsule form.

28. Broad’s average use to assign cost of revenue to cost objects will be classified as

refined costing system

refined selling system

undefined costing

defined selling system

Detailed SolutionBroad’s average use to assign cost of revenue to cost objects will be classified as

29. Cost of production is

Prime cost + Factory overheads

Factory cost + Administrative overheads

Direct cost + Indirect expenses

Prime cost + Administrative overheads

Detailed SolutionCost of production is

30. Three types of standards are . . . . . . . .

Current standard, basic standard and normal standard

Currency standard, basel standard and actual standard

Actual standard, estimated standard and expected standard

Expected standard, ideal standard and current standard

Detailed SolutionThree types of standards are . . . . . . . .

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